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POWER: Acer Rejects LTTRs for NL-NO2, Calls for Alternative Hedging Solutions

POWER

Acer has decided not to implement long-term transmission rights (LTTRs) between the Netherlands and Norway (NO2), citing limited benefits and potentially higher costs for consumers, it said.

  • Instead, Acer has directed the Dutch TSO to explore alternative solutions to enhance hedging opportunities and must submit them to its National Regulatory Authority. It has six months to do so.
  • The EFTA Surveillance Authority will issue a separate decision for Norway under the EEA Agreement.
  • The decision was due to the Dutch and Norwegian regulators identifying insufficient long-term hedging options for electricity market participants.
  • And without adequate hedging, market players face greater price volatility and uncertainty in investment returns.
  • However, Dutch and Norwegian regulators could not reach an agreement, so the matter was escalated to Acer and the EFTA Surveillance Authority.
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Acer has decided not to implement long-term transmission rights (LTTRs) between the Netherlands and Norway (NO2), citing limited benefits and potentially higher costs for consumers, it said.

  • Instead, Acer has directed the Dutch TSO to explore alternative solutions to enhance hedging opportunities and must submit them to its National Regulatory Authority. It has six months to do so.
  • The EFTA Surveillance Authority will issue a separate decision for Norway under the EEA Agreement.
  • The decision was due to the Dutch and Norwegian regulators identifying insufficient long-term hedging options for electricity market participants.
  • And without adequate hedging, market players face greater price volatility and uncertainty in investment returns.
  • However, Dutch and Norwegian regulators could not reach an agreement, so the matter was escalated to Acer and the EFTA Surveillance Authority.